Cantor Initiates Coverage of Coinbase with Overweight Rating and $245 Target
Cantor Fitzgerald initiated coverage of Coinbase (COIN) with an overweight rating and a price target of $245. Key points include:
- Shares rose over 5% in early trading.
- Current trading levels reflect a 32% discount to historical valuation multiples.
- Coinbase's L2 (Base) and stablecoin partnership with Circle are seen as pivotal for its future.
- Analysts believe these segments can transform Coinbase's image from a cyclical trading platform to essential crypto infrastructure.
- Increased visibility into earnings from Base and stablecoins could lead to a re-rating of shares.
- Base's user growth is expected to enhance transaction fee revenue for Coinbase.
- The market underestimates the potential of stablecoins in displacing traditional cross-border payment systems.